escrow account services - دائرة الأراضي estate... · services real estate registration...

ESCROW ACCOUNT SERVICES

OurServices

Real EstateRegistration

DubaiReal Estate

InstituteE-Systems

Real EstateInvestment

Managementand Promotion

Center

TenancySector

RentalDisputesCenter

Real EstateRegulation

Marketing and Corporate Communications Department Planning and Institutional Development Department

Dubai Land Department@Land_DepartmentLandDptDubai@Land_Departmentدائرة األراضي واألمالك حكومة دبي

LandDepartmentDubaiGovernment

Tel.: 600555556 E-mail: [email protected] Website: www.dubailand.gov.ae

Vision:To position Dubai as

the world’s first real estatedestination as to innovation,

trust and happiness

Mission:To create an innovative and

sustainable real estate environment that will promote Dubai as the world’s happiest city through:

Smart servicesProfessional human and

financial resourcesIntegrated real estate

legislation

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Escrow Account Services

Request to Activate an Escrow Account 5

Request for Transfer of Escrow Account 6

Request to Receive a Payment from the Project Escrow Account

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Request for Withdrawal of Profits of Under-Construction Project

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Request for No Objection Certificate to Withdraw the Profits of Completed Project

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Request to Increase Administrative Expenses Cap

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Searching for Certified Auditors 15

Searching for Certified Escrow Agents 16

Request to Cancel Registration of an Escrow Agent/ Audit Firm

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Request for Certification/ Renewal of Certification of an Escrow Agent or Audit Firm

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Request to Activate an Escrow Account

This service allows real estate developers to apply to activate the escrow accounts for off-plan real property sold in freehold areas, and to activate the accounts of halted real estate projects.

The service is provided by the Escrow Accounts Section at the Department of Real Estate Escrow Accounts.

Required Documents

1- The status of the project must be ‘Active’2- The project file maintained by the Department of Real Estate Escrow

Accounts must be completed3- The financial report of the past financial year4- A recent technical report issued by the Land Department 5- A letter from the escrow agent to confirm opening sub-accounts for

all real estate units in the names of investors

In case of transfer:6- A letter from the escrow agent in charge of the new account

confirming the receipt of all amounts and documents related to the escrow account from the escrow agent in charge of the old account

7- Confirmation that all financial data are transferred from the escrow agent of the old account to the escrow agent of the new account as part of the monthly escrow agent reports

Fees

N/A

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Request for Transfer of Escrow Account

This service allows clients to apply to transfer to new escrow accounts for their off-plan rea l property sold in freehold areas.


Required Documents

1- The status of the project must be ‘Active’2- The reason for transfer must be stated3- A No Objection Letter from the escrow agent of the old account with

an undertaking to maintain the project escrow account for a period of no less than three (3) months and no more than one (1) year, and an undertaking to immediately transfer any amounts collected after the transfer to the new escrow account

4- A No Objection Letter from the escrow agent of the new account with an undertaking to activate the project escrow account only after obtaining the approval of the Real Estate Regulatory Agency

5- The developer must submit an undertaking to transfer all amounts and documents related to the project escrow account from the escrow agent of the old account to the escrow agent of the new account within three (3) working days

6- An undertaking by the developer to notify all unit owners of the new escrow account number

7- The developer must provide an undertaking to apply Law No. (13) of 2008, as amended, to all investors in the project who fail to comply with their contractual obligations (forms)

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Fees

N/A

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Request to Receive a Payment from the Project Escrow Account

This service allows real estate developers to apply for receiving payments from the project completion accounts of their real estate projects sold off-plan in freehold areas.


Required Documents

1- The status of the project must be ‘Active’2- Undertaking by the contractor to continue providing services based

on cash flows at the rate of 50% only, and that only the contractor payments shall be disbursed

3- A recent technical report issued by the Land Department 4- Restricting the spending on projects whose percentage of

completion exceeds 60% (pursuant to a technical report issued by the Real Estate Regulatory Agency)

5- Submitting the financial report of the past financial year6- At least 70% of the price of land must be paid7- Any fees owed to the Land Department or Real Estate Regulatory

Agency must be paid8- The developer must provide an undertaking that he will continue

to develop the project and will not cease operations regardless of received payments. The project shall be developed according to a specific time frame approved by the project consultant

9- An undertaking by the developer to settle any other financial claim, including the payments due to the project consultants

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10- Payments may be disbursed only where none of the project phases is marked with a red flag.

11- The developer shall offer various incentives, to be recorded and maintained in the project file, which will be available for all investors to maintain their interest in the project


Fees

N/A

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Request for Withdrawal of Profits of Under-Construction Project

This service allows real estate developers to apply for a No Objection Certificate to withdraw profits of their under-construction projects from the escrow accounts of these projects.


Required Documents

1- The project file maintained by the Department of Real Estate Escrow Accounts must be completed

2- Full price of land must be paid3- A recent certified financial report must be submitted, and any

shortage in the project escrow account must be covered4- A recent technical report issued by the Land Department must be

submitted5- Any fees owed to the Land Department or Real Estate Regulatory



7- The remaining funds allocated for construction, in addition to construction expenses of 10% of the value of constructions, must be available in the escrow account, and the project consultant must submit a letter indicating the value of the construction contract and total remaining funds

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8- At least 5% of the amount of net sales must be available in the escrow account

9- The project contractor or developer must provide an undertaking to render the required maintenance services for one (1) year after the date of completion of the project


11- The developer must provide an undertaking developer to settle any other financial claim, including marketing payments, fees, refund of amounts to investors), from his own resources

Fees

N/A

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Request for No Objection Certificate to Withdraw the Profits of Completed Project

This service allows real estate developers to apply for a No Objection Certificate to withdraw profits of their under-construction projects from the escrow accounts of these projects.


Required Documents

Projects that were completed less than one (1) year ago:1- Any fees owed to the Land Department or Real Estate Regulatory

Agency must be paid2- A No Objection Letter must be issued by the Department of Real

Estate Registration Services, to confirm that Title Deeds have been issued in the names of the buyers in the permanent register system

3- A No Objection Letter must be issued by the Real Estate Relations Regulatory Department, to confirm completing the establishment of the project owners association

4- The project contractor or developer must provide an undertaking to render the required maintenance services for one (1) year after the date of completion of the project

5- The project Certificate of Completion must be issued to confirm that the project has been delivered in accordance with contract, and that the project is free of any construction defects


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7- A recently audited financial report of the cash flows of the project as per (R/T/02) template must be submitted

8- At least 5% of the amount of net sales must be available in the escrow account, and may only be released one (1) year after the date of the project Certificate of Completion

9- A No Objection Letter must be issued by the escrow agent

Projects that were completed more than one (1) year ago:1- Any fees owed to the Land Department or Real Estate Regulatory

Agency must be paid2- A No Objection Letter must be issued by the Department of Real

Estate Registration Services, to confirm that Title Deeds have been issued in the names of the buyers in the permanent register system

3- A No Objection Letter must be issued by the Real Estate Relations Regulatory Department, to confirm completing the establishment of the project owners association

4- The project Certificate of Completion must be issued to confirm that the project has been delivered in accordance with contract, and that the project is free of any construction defects


6- A No Objection Letter must be issued by the escrow agent

Fees

N/A

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Request to Increase Administrative Expenses Cap

This service allows real estate developers to apply for increasing administrative expenses cap prescribed for their real estate projects sold off-plan in freehold areas.


Required Documents

1- The status of the project must be ‘Active’2- A recent technical report issued by the Land Department must be

submitted3- The project file maintained by the Department of Real Estate Escrow

Accounts must be completed4- The percentage of completion must not be less than 60% (pursuant

to a technical report issued by the Real Estate Regulatory Agency)5- The financial report of the past financial year must be paid, and any

shortage in the project escrow account must be covered6- Any fees owed to the Land Department or Real Estate Regulatory



Fees

N/A

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Searching for Certified Auditors

This service allows clients to browse the names of all financial auditors certified by the Land Department.

The service is provided on the website of the Land Department.

Required Documents

N/A

Fees

N/A

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Searching for Certified Escrow Agents

This service allows clients to search for escrow agents certified by the Land Department.

The service is provided on the website of the Land Department.

Required Documents

N/A

Fees

N/A

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Request to Cancel Registration of an Escrow Agent/ Audit Firm

This service allows all financial institutions in Dubai to apply to cancel their registration with the Land Department.


Required Documents

Request to Cancel Registration of an Escrow Agent1- Developers must be notified to transfer the management of their

escrow accounts to another escrow agent certified by the Land Department within one (1) month from the date of notification

2- The escrow agent must submit an undertaking to provide any information requested by the Real Estate Regulatory Agency after cancellation of registration

3- The escrow agent must submit an undertaking to comply with the terms of the agreement between the escrow agent and the Real Estate Regulatory Agency with respect to cancellation of registration

4- The escrow agent must submit an undertaking to transfer all amounts and documents related to the project escrow account to the new escrow agent within three (3) working days

5- The escrow agent must submit an undertaking to immediately transfer any amounts collected after the transfer to the escrow account maintained by the new escrow agent

Request to Cancel Registration of an Audit Firm1- All financial reports must be submitted to the Real Estate Regulatory

Agency

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2- The audit firm must submit an undertaking to comply with the terms of the agreement between the audit firm and the Real Estate Regulatory Agency with respect to cancellation of registration

3- The escrow agent must submit an undertaking to provide any information requested by the Real Estate Regulatory Agency after cancellation of registration

Fees

N/A

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Request for Certification/ Renewal of Certification of an Escrow Agent or Audit Firm

This service allows all audit firms and escrow agents in the UAE to apply for certification or renewal of certification as auditors or escrow agents.


Required Documents

Request for Certification/ Renewal of Certification of an Escrow Agent 1- The escrow agent must be licensed by the Central Bank2- The escrow account must have a technical department to monitor

projects, or contract with a consultancy firm to monitor and follow up projects

3- Employees of this organizational unit must attend a training course (Escrow Agent Course) on applying the law and its implementing bylaw

4- Compliance by the escrow agent with the annual appraisal standards must be verified (in case of renewal request)

5- Monthly reports must be submitted on the prescribed forms in accordance with the applicable resolutions

6- The number of warnings issued to the escrow agent must not exceed three (3) warnings within a single financial year

7- Reports on field visits to the escrow agent must be reviewed, and his compliance must be verified

8- A list of employees and contact details must be submitted on

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quarterly basis9- The escrow agent must have an integrated unit to manage escrow

accounts in the Emirate of Dubai10- The escrow agent must have an electronic escrow account

management system certified by the Real Estate Regulatory Agency

11- An annual escrow agent certification fee of AED 75,020 must be paid + knowledge fees of 10 Dirhams + 10 Dirhams innovation fees

12- An escrow agent agreement must be concluded with the Land Department (new requests)

13- A certificate confirming the opening with the escrow agent of sub-accounts, in the names of investors, for all real estate units

Request for Certification / Renewal of Certification of an Audit Firm1- Applicant must be certified as an auditor by the Department of

Economic Development2- Curriculum vitae shall be submitted, and all questions prescribed

by the Real Estate Regulatory Agency must be answered (new requests)

3- A Memorandum of Association must be submitted 4- Employees of the firm attend a training course on applying the law

and its implementing bylaw5- Compliance by the audit firm with the annual appraisal standards

must be verified (in case of renewal requests) 6- The registration of the audit firm and employees must be certified by

the Ministry of Economy 7- Audit firm certification fee of AED 50,020 annually + knowledge fees

of 10 Dirhams + 10 Dirhams innovation fees.8- An audit firm agreement must be concluded with the Land

Department (new requests)

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Fees

Application for Escrow Agent Certification/ Renewal of Certification1- Annual fee of 75,000 Dirhams2- Knowledge Dirham Fee of 10 Dirhams for each service3- Innovation Dirham Fees

Application for Audit Firm Certification/ Renewal of Certification1- Annual fee of 50,000 Dirhams2- Knowledge Dirham Fee of 103- Dirhams for each service4- Innovation Dirham Fees